Rivkin Financial Services (RFS) suitor Farooq Khan has succeeded in his crusade of seizing control of the listed financial services group with the ousting of RFS chief executive at an extraordinary general meeting (EGM) yesterday and the confirmation today that Khan’s nominations to the board have been approved.
At the EGM and subsequent annual general meeting (AGM) yesterday, West Australian corporate raider Khan was triumphant in securing his place on the RFS board along with his two associates Christopher Ryan and Simon Cato.
However today two further appointments were confirmed with Khan-backed William Johnson and Victor Ho also being appointed.
The win for the Khan crew spelt defeat for existing chief executive and director, Andrew Davis – who lost his seat on the board by less than 1 per cent.
The other departing directors, Lawrence Chartres and George Lister, were both allies of the outgoing Davis.
Khan’s companies control around 19 per cent of the RFS, which used to be the flagship of the Rivkin financial empire.
Meanwhile, IWL the parent company of stockbroker Sanford, which bought a 10.14 per cent stake in the group last week voted in favour of Davis’ control.
However, following Davis’ defeat, the IWL chief executive Otto Buttula offered Khan his services as a member of the new board.
Shareholders also voted on a change of name to Avcol Pty Ltd, however this resolution failed to draw the necessary support of 75 per cent and was not approved.
The win for Khan comes after a neutral result for both he and Davis this week in the Federal Court where after spending the last few months accusing the other of underhand and illegal means of acquiring shares in RFS, the Court dismissed the claims of both parties, leaving the competing executives to fight it out at the AGM.
